Americans are swamped in credit card debt.  A recent report shows that the average American family has over $8,000 in revolving debt and 43 percent are spending more than they earn each year.

Eliminating credit card debt is a good option if you want to get your financial life on track again. It is recommended, that you consolidate your debts now, as this is the best time to do so. It is widely known, that the economy has slowed down, and as a result of this the interest rates have slowed down as well.  If you are paying high rates of interest on credit cards and other debts which are unsecured, and you have accumulated some home equity, there are chances that you can restructure your debts along with reducing your monthly installments and as a result of this, everything gets paid off faster.

If you are paying interest that is higher than 1% as compared to the latest mortgage rates, you may be a decent nominee for debt consolidation through a Home Equity Line of Credit.  Moreover, if you are paying more than or equal to 15% on your credit cards, then these debts can be paid off at a much lower rate and it is noted that people who pay less interest are also able to get a reduction in the principal amount on their debts. If you don’t have the option to pay off all your debts, which are unsecured, then it is suggested that you prioritize your needs. You can also go for unsecured debt consolidation.

The best method to do this is to start by debt stacking, where you can pay off all your lower balances initially, which frees up funds so that you can apply to higher balances. If you have one credit card which has high balance, which cannot be covered by a consolidation loan, then eliminating all the payments of the accounts which have lesser balance will free up money for payment of other accounts.  Consolidating credit cards is one of the best options as far as
getting out of debt is concerned.

This report was contributed by guest author Elissa Brown of  debtconsolidation123.net.